National Securities Market Association is a leading trading organization of
the participants of the Russian securities market and associate member of
International Capital Markets Association (ICMA) has established a Russian Repo
Council.
For three years NSMA jointly with main market participants, including Sberbank,
Vneshtorgbank, Gazprombank, MMB, MDM-Bank, Vnesheconombank, Uralsib, Bank Soyuz
and other leading financial organizations of the country with support of the
Bank of Russia and MICEX have launched a project “Repo development in Russia”.

In the course of its realization there were achieved
significant results that facilitated and activated the Repo operations in the
Russian stock market, namely:
• For the first time Repo transactions were introduced into the Russian
legislation;
• in 2001 a Repo Taxation Regulation (by analogy with loans) was enacted on the
basis of draft law, which was elaborated by the Bank of Russia and NSMA and
proposed by RF State Duma deputy P.A.Medvedev;
• Exchange Repo transactions (with the Bank of Russia and inter-dealer
transactions) were implemented at MICEX;
• Normative documents of the Bank of Russia and MICEX were added by the NSMA
Basic Provisions that set forth the procedure of settlement of non-standard
situation in Repo deals;
• At the NSMA request ICMA has prepared a Russian translation of ICMA General
Master Repo Agreement (GMRA) that was first published in Russia;
• In 2005 on the basis of the NSMA project and as a result of constructive works
carried out by the RF State Duma Taxation Committee (Deputy Buryikin N.V.) the
second drafting of the Article 282 of Part II of the Tax Code was approved and
optimized Repo taxation procedures (particularly, for short positions, etc.);
• In April 2006 the Ministry of Finance of RF released the Methodical
instructions for Repo taxation (basing on the project, prepared by NSMA), which
interpreted some of the articles of legislation;
• In September 2006 the NSMA General Master Repo Agreement was approved by the
largest market participants and presented in the market;
• In order to get representative Repo prices for a number of securities unquoted
at the stock exchanges a National Fixing of Bonds – MIRP – was devised;
• methodology of operations is being developed, professional Repo training
seminars are being held on regular basis.

The works conducted and followed by activation of Repo operations,
development of Repo activities in compliance with the best world’s practices,
supervision of authenticity of their conduct and participants responsibilities,
strengthening of interaction with participants of international financial market
require coordination of actions of all participants of the process. For this
purpose a Russian Repo Council was established:
Its objectives are:
• assistance in developing Repo business;
• coordination of activities of the Russian participants on Repo development in
the Exchange and OTC markets;
• promotion and expansion of use of the NSMA General Master Repo Agreement;
• provision of participants responsibility in Repo operations and elaboration of
disciplinary measures with regard to that;
• representation of Repo market participants during interaction with regulators
and international financial organizations;
• protection of the Russian participants rights in international Repo market,
etc.
Russian Repo Council complies with the structure of International and National
Repo Councils under ICMA.
Russian Repo Council and NSMA are inviting the market participants who are
interested in developing Repo operations in the Russian market to join for
cooperation.